MEDICARE CORNER
Have You Heard About IRMAA and Part B Reimbursement?
(No, not that Irma. This isn’t a gossip column!)
BY FELICE HANNAH
A BRIEF HISTORY ABOUT:
MEDICARE PART B
REIMBURSEMENT AND
INCOME-RELATED MONTHLY
ADJUSTED AMOUNT (IRMAA)
We have a greater appreciation
for our benefits when we understand
its history.
Mary Pinkett was a Labor
Advocate and the first African-
American woman elected to the
New York City Council in 1974.
She remained in this position until
term limit laws forced her from
office in 2001.
Mary Pinkett died in 2003. Her
husband, William (Bill) Pinkett, was
her stalwart supporter, a Retired
New York City Administrator, who
remains actively involved. Bill is on
the Executive Board of the Council
of Supervisors and Administrators
(CSA), a Board Member of Medgar
Evers College, and a member of
many Community and Political
Organizations.
Mary was an advocate for the
working class and a skilled debater.
She used her skills as an advocate
and debater to get the support of
the full City Council to approve
her bill to reimburse City Retirees
Medicare Part B Premiums.
In 1999, she introduced Bill
#0580-1999 Law number 2001/039,
entitled “A Local Law to amend
the administrative code of the city
of New York, in relation to health
insurance for city employees, city
retirees and their dependents.”
Following hearings and amendments,
the Bill was approved by the
City Council. The then mayor, Rudy
Giuliani vetoed the bill. The full
City Council, Peter Vallone, residing
as City Council Speaker, overrode
the Mayor’s veto and passed
the Bill on June 28, 2001. The Bill
to reimburse 100% of Medicare
Part B Premiums for eligible Retired
City Employees and their eligible
dependents, enrolled in Medicare
and the City Health Benefits Plan,
became Law in the year of 2001.
Thus began, with the exclusion
of enrollment penalties and
higher income-related Part D,
reimbursement of 100% of the
Medicare Part B Premium for City
Retirees receiving a pension check
and enrolled in the City Health
Benefits Plan.
FAST FORWARD TO 2003
AND THE MEDICARE
MODERNIZATION ACT 2003.
In 2003, the Part B Premium was
being subsidized by the Federal
Government. Part B beneficiaries
paid approximately 25% of the
cost and the balance was subsidized
by the Federal Government.
Section 1839 (i) (as amended by
section 811 of the MMA) of the
Social Security Act “provides that
individuals with modified adjusted
gross income (MAGI) in excess of
a threshold amount shall receive
a lower premium subsidy.” This
raised the Medicare Part B premium
for some individuals. Individuals
with income above a certain
threshold would, in addition to
paying the standard premium and
any enrollment penalties, pay an
income-related monthly adjusted
amount (IRMAA) effective 2007.
HOW TO APPLY FOR MEDICARE
PART B AND IRMAA
REIMBURSEMENT
In order to receive Medicare Part
B reimbursements, you must provide
The Office of Labor Relations
a copy of your Medicare card and/
or any eligible dependent.
Upon receipt, the Office of Labor
Relations will automatically deposit
your standard reimbursement to
the bank account where your pension
check is either Electronic Fund
Transfer (EFT) or direct deposit.
If your MAGI is above a certain
income threshold, you may
be entitled to reimbursement of
Income-Related Monthly Adjusted
Amount (IRMAA). You must apply
for IRMAA reimbursement each
year.
Former NY Councilwoman
Mary Pinkett
2018
THE 2017 THRESHOLD FOR STANDARD INCOME PART B PREMIUMS BASED ON 2015 FILING INCOME:
March • Individuals with a Maximum Adjusted Gross
• Married Couples with a MAGI of $170,00 or less
are not entitled to reimbursement of Income Related
Income (MAGI) of $85,000 or less
NOTE: Standard 2017 Part B Premium Beneficiaries
Monthly Adjusted Amount (IRMAA).
¢COURIER THE 2017 THRESHOLD FOR HIGHER INCOME MEDICARE PART B PREMIUMS BASED ON 2015 FILING INCOME:
• Individuals with a MAGI above $85,000
IRMAA Reimbursement, you will need to submit
2. Write to the Office of Labor Relations
• Married Couples with a MAGI above
to the Office of Labor Relations the Part B
(regarding you or an eligible dependent)—
TOWERS $170,000
IRMAA application form a copy of your Social
include your name, social security number,
NOTE: Higher Income Beneficiaries should
Security Administration “statement letter” and
agency in which you retired from, and phone
file for IRMAA reimbursement
proof of paid monthly Part B Premiums. Such
number.
Go to the Office of Labor Relations website to
proof may be copies of your canceled checks
Office of Labor Relations Health Benefits
SHORE download Medicare Part B IRMAA reimbursement
and SSA quarterly payment receipts.
Program
application form and follow directions.
Attn: Medicare Part B Reimbursement Unit
The reimbursement application form for 2017
TO CONTACT THE OFFICE OF LABOR
40 Rector Street
NORTH Medicare Part B IRMAA will be available on
RELATIONS YOU CAN:
3rd Floor
line at the end of March 2018.
1. Visit Monday–Friday (except legal holidays)
New York, New York 10006
If you are not collecting Social Security
between 9 a.m.–2 p.m. (No appointment
For additional information visit the website
20 Benefits and are eligible for Medicare Part B
necessary.)
of The Office of Labor Relations: nyc.gov/hbp